Canada: FMC’s Overview of Significant Developments in the Canadian Energy Industry - December, 2005

Last Updated: January 31 2006

Article by Doug Black, Q.C., Bill Gilliland, Nick Kangles, Alex MacWilliam, Miles Pittman, Francis Saville, Q.C. and Karim Mahmud

Alberta Oilsands News

Enbridge has commenced construction of its $1.2 billion Southern Access pipeline expansion project. The expansion will boost capacity of synthetic crude on the current 2 million bpd system by 400,000 bpd by 2009. In addition to capacity increases, the expansion will extend the reach of the current pipeline to southern Illinois and Cushing, Oklahoma. Work on the expansion will start immediately, with capacity increases commencing in 2007. (See number 1 on map.)

Petro-Canada announced plans to spend up to $810 million to more than double production of synthetic crude at its MacKay River oilsands facility, located about 45 kilometres (28 miles) north of Fort McMurray. The plans include construction of a cogeneration electrical plant which will produce both power and steam. The expansion will result in a boost in production from the 30,000 bpd forecast for late 2006 to 70,000 bpd by 2012. (See number 2 on map.)

Husky recently announced that its Sunrise oilsands project has received regulatory approval from the Alberta Energy and Utilities Board. The $500 million project will be developed in 50,000 bpd phases starting in 2009 and is expected to reach a peak operational capacity of 200,000 bpd of raw bitumen. Sunrise will use steam-assisted gravity drainage to recover the bitumen. The project, which is located approximately 60 kilometres (37 miles) northeast of Fort McMurray, covers 57,634 acres in the Athabasca oilsands, and contains approximately 3.2 bbbl of recoverable bitumen. (See number 2 on map.)

Synenco announced plans to build an upgrader northeast of Edmonton that will process raw bitumen from its proposed $5.3 billion Northern Lights project. The upgrader will be built on 1,264 acres of land in Sturgeon County. When fully operational, the Northern Lights project is expected to produce 100,000 bpd of light sweet synthetic crude in two phases, beginning with 50,000 bpd by late 2010 and an additional 50,000 bpd by late 2012. (See number 3 on map.)

West Coast News

Kitimat LNG announced it has reached a tentative agreement with the Haisla First Nation, which the company said is the first step towards construction of its proposed $500 million liquefied natural gas ("LNG") receiving terminal in Kitimat, British Columbia. The company noted that while there are many proposed LNG facility sites along the west coast, Kitimat LNG’s agreement with the Haisla increases the company’s potential to be the first project to market. (See number 4 on map.)

Keyera Facilities Income Fund announced that it has started construction of its Caribou North Gas Gathering System pipeline. The 6-inch diameter pipeline will transport sour gas from northeast British Columbia to Keyera’s Caribou gas plant. To accommodate the additional gas, Keyera also announced that it will expand the gas plant’s capacity from 25 mmcfpd to 65 mmcfpd by mid 2006. Gross capital expenditures on the project will be approximately $21.5 million. (See number 5 on map.)

Canadian Arctic News

The National Energy Board’s regulatory hearings for the $7 billion Mackenzie Valley pipeline project will begin in Inuvik, Northwest Territories on January 25, 2006. The environmental joint review panel will start its portion of the hearings in Inuvik on February 14, 2006. The Mackenzie project involves a 1,350 kilometres (840 miles) pipeline along the Mackenzie River valley to Canadian and U.S. markets that would ship up to 1.9 bcfpd. The project has been in the works since the 1970s when three large gas fields were discovered in the Mackenzie Delta region. (See number 6 on map.)

Assuming regulatory approvals are given by the third quarter of 2007, the major pipeline and facilities work will likely begin in the winter of 2008 to 2009. In this case, natural gas could be flowing down the pipeline in late 2011. The natural gas resources that ultimately might supply the pipeline have been estimated as 67.9 tcf of marketable resource, of which 11.5 tcf has already been discovered.

East Coast News

Husky has announced that it received the first shipment of crude oil from the White Rose oil field. The field commenced production on November 12, 2005. The first oil was delivered to Irving Oil’s Canaport terminal near Saint John, New Brunswick. The first shipment included a cargo of approximately 600,000 bbls of crude oil, shipped from the White Rose field, 350 kilometres (217 miles) east of Saint John’s, Newfoundland and Labrador. The White Rose field is currently producing 75,000 bpd. In 2006, Husky plans to spend $350 million on the east coast offshore, including drilling and completing a fourth production well on the White Rose field that is expected to boost production to a peak of approximately 100,000 bpd by mid-2006. Husky also plans to drill a delineation well to further define reserves in the North Avalon pool, adjacent to the South Avalon pool of the White Rose oil field. Husky owns 72.5 % of the White Rose project and is the operator. Petro-Canada holds the remaining 27.5 % interest. (See number 7 on map.)

Corridor Resources has announced promising results of initial flow tests in the McCully field in New Brunswick. As a result, the company is looking to proceed with applications to the New Brunswick government and Public Utilities Board for approvals to construct gathering lines, a gas plant and a 48 kilometre (30 mile) pipeline to connect the McCully field with markets in New Brunswick and New England through the Maritimes and Northeast pipeline system. The McCully field is located near Sussex in south central New Brunswick and is estimated to contain more than 1 tcf of gas in place in the Hiram Brook formation. Since April, 2003, two wells have been on production, supplying natural gas at an average of 2 mmcfpd to a local market. Corridor expects to be flowing natural gas to the Maritimes and Northeast pipeline system by the end of 2006. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
17 Oct 2018, Webinar, Toronto, Canada

Dentons and SheEO are coming together for an evening of #radicalgenerosity on October 17, 2018. Meet Vicki Saunders, Founder of SheEO, and learn about how SheEO is changing the landscape for female entrepreneurs.

17 Oct 2018, Webinar, Toronto, Canada

With the continued focus on Bill 148’s significant changes to the Employment Standards Act, Dentons’ Toronto Employment and Labour group is pleased to launch a new webinar series focusing on Bill 148.

17 Oct 2018, Seminar, Québec, Canada

Dentons is pleased to invite you to join us for a breakfast seminar as part of the Les Matinées Dentons series on issues relevant to you and your business.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions